RE:Mineral Resources Mineral Resources
Mineral resources could increase significantly in 2019, without new drilling, due to USD1,230 long term price of gold used in 2018?
Source:-
https://www.klgold.com/assets/resources-and-reserves/default.aspx
Detailed footnotes related to Mineral Reserve Estimates (dated December 31, 2018)
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CIM definitions (2014) were followed in the calculation of Mineral Reserves.
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Mineral Reserves were estimated using a long-term gold price of US$1,230/oz (C$1,635/oz; A$1,710/oz).
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Cut-off grades for Canadian Assets were calculated for each stope, including the costs of: mining, milling, General and Administration, royalties and capital expenditures and other modifying factors (e.g. dilution, mining extraction, mill recovery.
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Cut-off grades for Australian Assets from 0.4 g/t Au to 3.0 g/t Au, depending upon width, mining method and ground conditions; dilution and mining recovery factors varied by property.
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Thanks for the post. I hadn't really thought too much about what higher gold prices do to the reserve base. In the case of Fosterville it would depend a lot on how much is mined out during the year.
I wonder how much marginal grade would be added to reserves at say $1400 a level we could probably hope to stay above even with a big POG pullback.
Marginal grades at Holt and Northern Territory properties might also become reserves and Balmoral, Osisko and even Novo shareholdings increase in value if .
It makes a Balmoral takeover more likely as it would be a cheap way to add to the reserve base and get a mill in the area at the same time which could be put to work processing their own ore and for others if the price is right.